New Hope : FY25 Half Year Results Financial Report

About this update from New Hope Corporation Limited

ASX Appendix 4D - Interim Report For the half year ended 31 January 2025 New Hope Corporation Limited ABN 38 010 653 844 A. Statutory results Current period From 1 August 2024 to 31 January 2025 Previous period From 1 August 2023 to 31 January 2024 B. Results for announcement to the market 31 January 2025 31 January 2024 Statutory results $000 $000 Movement Revenue from ordinary activities 1,019,408 856,570 19.0% Profit from ordinary activities after tax attributable to members 340,306 251,669 35.2% Net profit for the period attributable to members 340,306 251,669 35.2% C. Brief explanation of figures reported This report is based on the Interim Financial Report of the Company that has been reviewed by the auditor. The Independent Auditor's Review Report, which was unmodified, is included within the Company's Interim Financial Report for the period ending 31 January 2025, and accompanies this Appendix 4D. For a brief explanation of the figures above, please refer to the Company's Presentation of FY25 Half Year Results and the Directors' Report, which forms part of the Interim Financial Report. D. Dividends - ordinary shares Amount Franked amount Dividends paid during the period Cents per share Cents per share 2024 final dividend 1 22.0 22.0 1. Declared 17 September 2024, paid 24 October 2024. The Directors have declared an interim dividend of 19.0 cents per share. The dividend is fully franked based on tax paid at 30 per cent. The dividend is payable on 9 April 2025 to shareholders registered as at 25 March 2025. E. Net tangible assets per security 31 January 2025 31 January 2024 Cents Cents Net tangible assets per security 306.8 296.3 F. Foreign entities Foreign entities have been accounted for in accordance with Australian Accounting Standards. G. Control gained or lost over entities during the period (a) Names of entities where control was gained in the period Control was gained over Northern Energy Corporation Limited and Colton Coal Pty Limited during the period. (b) Names of entities where control was lost in the period There were no entities over which control was lost during the period. Half Year Report to 31 January 2025 New Hope Group Half Year Report to 31 January 2025 Coal. Energy. Agriculture. Responsibly. Reliably. New Hope Group is an Australian coal producer with associated port, oil and gas, and agricultural operations. Acknowledgement of Country New Hope Group acknowledges the Traditional Owners of Country throughout Australia and First Nations people in the locations in which we operate our business. We pay our respects to Elders past and present. Contents Overview and highlights Directors' Report Auditor's independence declaration Financial Report Notes to the Financial Statements Directors' declaration Independent Auditor's Report Corporate directory 05 06 15 16 21 37 38 40 Half Year Report to 31 January 2025 New Hope Group 03 Purpose and Vision Coal. Energy. Agriculture. Responsibly. Reliably. Values Integrity Respect Responsibility Wellbeing Resilience Collaboration We are ethical, We listen and We are We all seek to We are adaptable We work together honest and treat others empowered prevent harm, and see and focus on the trusted to do as we expect and accountable promote safety opportunity best outcome. the right thing. to be treated. for our actions. and enhance in change. health. Strategy Our strategy is to safely, responsibly and efficiently operate our low-cost, long-life assets with a focus on disciplined capital management, providing valuable returns to our shareholders. Half Year Report to 31 January 2025 New Hope Group 04 Overview and highlights Operational highlights 1 Safety - TRIFR 2 ROM coal production Saleable coal production Coal sales 4.08 8.3Mt 5.4Mt 5.4Mt 18% decrease 56% increase 33% increase 44% increase Financial highlights 1 Interim dividend Underlying EBITDA 3 Cash flow from NPAT (Before non-regular items) operating activities 19¢ $517m $317m $340m Per share 22% increase 143% increase 35% increase Percentage movements relate to the previous period being 1 August 2023 to 31 January 2024, unless otherwise stated. Highlights reflect 80% interest in Bengalla Mine. Total Recordable Injury Frequency Rate (TRIFR) - twelve-month moving average. Percentage movement relates to the TRIFR as at 31 July 2024. Following a safety and wellbeing incident and injury classification review, the TRIFR as at 31 July 2024 has been revised from 5.32 to 4.99. Similarly, the TRIFR as at 31 January 2025 has been revised down from 4.40 (as stated in the Quarterly Activities Report 31 January 2025) to 4.08. Underlying earnings before interest, tax and depreciation and amortisation (EBITDA) is a non-IFRS measure. Half Year Report to 31 January 2025 New Hope Group 05 Directors' Report The Directors present their report on the consolidated entity consisting of New Hope Corporation Limited ('the Company' or 'New Hope') and its controlled entities ('the Group'). Directors The following persons were Directors of New Hope during the year and up to the date of this report: Robert D. Millner AO Ian M. Williams Thomas C. Millner Jacqueline E. McGill AO Steven R. Boulton Lucia A. Stocker Brent C. A. Smith Principal activities The principal activities of New Hope consist of the development and operation of coal mines, port handling and logistics, investment in coal mines, agriculture and oil and gas production. Highlights Underlying EBITDA 1 result of $517.3 million, an increase of 21.8 per cent (31 January 2024: $424.8 million). Net profit after tax of $340.3 million, an increase of 35.2 per cent (31 January 2024: $251.7 million). Net cash from operating activities of $316.9 million, an increase of 142.6 per cent (31 January 2024: $130.6 million). Closing cash and cash equivalents of $414.0 million (31 July 2024: $638.8 million). Group saleable coal production of 5.4 million tonnes (Mt) representing an increase of 32.9 per cent (31 January 2024: 4.1Mt). Group Free on Rail (FOR) cash costs of $55.5/tonne, a decrease of 23.5 per cent (31 January 2024: $72.5/t) supported by disciplined cost control and execution of our organic growth plans. Discontinuance of Oakey Coal Action Alliance's (OCAA) legal challenge in relation to the Associated Water Licence granted to New Acland Stage 3, providing certainty for the local community and a clear runway to increase production. Increase in equity interest in Malabar Resources Limited to 22.97 per cent (31 July 2024: 19.97 per cent). 2024 fully franked final dividend of $186.0 million, representing 22.0 cents per share paid to shareholders during the period. 2025 interim dividend declared of 19.0 cents per share, or $160.6 million, payable to shareholders on 9 April 2025. 31 January 31 January 2025 2024 $000 $000 Statutory revenue 1,019,408 856,570 Statutory profit after tax 340,306 251,669 Underlying EBITDA 1 517,266 424,810 Reversal of impairment - QLD coal mining assets 2 122,698 - Impairment of oil and gas producing and exploration assets 2 (53,433) - Loss from revaluation of royalty and milestone receivables (24,769) - Gain from reacquisition of control over NEC/Colton 4,563 - Total non-regular items 49,059 - EBITDA 1 566,325 424,810 Financial income/(expenses) (7,052) 15,197 Depreciation and amortisation (95,814) (75,934) Statutory profit before tax 463,459 364,073 Net profit before tax and before non-regular items 1 414,400 364,073 Earnings before interest, tax, depreciation and amortisation (EBITDA), underlying EBITDA and net profit before tax (NPBT) and before non-regular items are non-IFRS measures. Refer to Notes 9(a) and 9(b) for details. Half Year Report to 31 January 2025 New Hope Group 06 Directors' Report continued Operating and financial review The Company reported a net profit after tax of $340.3 million for the period (31 January 2024: $251.7 million), representing a 35.2 per cent increase from the previous period driven by increased coal production, lower unit costs and solid realised pricing, which remained above long-term historical averages. Bengalla Mine and New Acland Mine recorded strong operational performances for the period, with Group Run-of-Mine (ROM) coal production of 8.3Mt and saleable coal production of 5.4Mt, an increase of 56.2 per cent and 32.9 per cent respectively, compared to the previous period. As a result, coal sales increased by 43.5 per cent, totalling 5.4Mt for the period. The increase in coal production reflects the continued execution of the Company's organic growth plans. Group Free on Rail (FOR) cash costs of $55.5/t (31 January 2024: $72.5/t) decreased by 23.5 per cent compared to the previous period due to disciplined cost control and increased coal production at Bengalla Mine and New Acland Mine. Similarly, Group Free on Board (FOB) cash costs (excluding royalties and trade coal) of $77.7/t were 20.6 per cent lower than the previous period (31 January 2024: $97.9/t). Gross revenue from coal sales was $937.5 million for the period, with an average realised sales price of $173.3/t (31 January 2024: $197.0/t), 12.0 per cent lower than the previous period. Cash flows and capital management The variance between Underlying EBITDA 1 and cash flow from operations is outlined below: 31 January 31 January 2025 2024 $000 $000 Underlying EBITDA 517,266 424,810 Net interest (paid)/received (1,322) 10,485 Net income taxes paid (105,850) (329,350) Non-cash net impairment reversal (69,265) - Other non-cash non-regular items 20,206 - Refunds/(payments) for security deposits 1,693 1,000 Net foreign exchange (4,637) (52) Non-cash share of results from equity accounted associates 4,267 - Non-cash employee benefit expense - share-based payments 2,458 2,098 Net loss on disposal of non-current assets 3,920 4,075 Settlement of provisional pricing (63,609) 5,334 Net working capital 11,764 12,203 Cash flow from operating activites 316,891 130,603 31 January 31 January 2025 2024 $000 $000 Payment for property, plant and equipment (126,036) (146,220) Payments for intangibles (127) - Proceeds from the sale of property, plant and equipment 27,740 10 Payments for exploration and evaluation assets (8,539) (2,654) Payments for equity accounted associates (36,147) - Net payments for other financials assets (206,993) (157,817) Cash flow from investing activities (350,102) (306,681) 1. Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) and non-regular items are non-IFRS measures. Half Year Report to 31 January 2025 New Hope Group 07 Directors' Report continued Operating and financial review continued Cash flows and capital management continued 31 January 31 January 2025 2024 Notes $000 $000 Purchase of shares to settle employee share plans (5,167) - Dividends paid 5 (185,974) (253,601) Repayment of lease liabilities (5,093) (4,948) Cash flow from financing activities (196,234) (258,549) 31 January 31 January 2025 2024 Cash flow summary $000 $000 Operating cash flows 316,891 130,603 Investing cash flows (350,102) (306,681) Financing cash flows (196,234) (258,549) Effects of exchange rate changes 4,637 52 Cash and cash equivalents at the end of the period 413,953 296,079 31 January 31 July 2025 2024 Capital management Notes $000 $000 Cash and cash equivalents 413,953 638,760 Other financial assets - managed investment funds 12 391,052 185,765 Liquidity available 805,005 824,525 Operating cash flows The Company generated operating cash flows of $316.9 million for the period (31 January 2024: $130.6 million). The increase in operational cash flows compared to the previous period was driven by higher coal sales and lower income taxes, offset by the settlement of certain provisionally priced sales linked to the Japanese Reference Price (JRP). Income taxes paid during the period totalled $105.9 million, down from $329.4 million paid in the previous period, which included the 2023 financial year tax payment of $190.5 million related to the elevated profit levels in the 2023 financial year. Net gains from foreign exchange on sales, commodity and foreign exchange hedge contracts totalled $44.9 million during the period (31 January 2024: $65.4 million). Half Year Report to 31 January 2025 New Hope Group 08 Directors' Report continued Operating and financial review continued Investing cash flows Investing cash outflows were $350.1 million for the period (31 January 2024: $306.7 million). During the period, the Company incurred net cash outflows of $207.0 million for other financial assets (31 January 2024: $157.8 million), which represent investments predominantly in short-term fixed income funds that yield higher returns compared to the Company's standard transaction bank account and term deposits. The investments in the Company's fixed income portfolio are spread across four fund managers: PIMCO, Flag, Revolution and Neuberger Berman. There are 11 underlying funds that are designed to maximise diversification across manager, asset class, liquidity source and geography. Around 80 per cent of the portfolio can be redeemed daily, with the majority of the balance within 12 months. The asset class is varied, but includes leveraged loans, various bonds (investment grade, hybrids, senior high yield, T2, AT1), RMBS, Commercial MBS and other specialty finance investments. The investment mix is regularly reviewed and subject to change. Investing cash outflows during the period included $36.1 million related to the acquisition of an additional 3.0 per cent Equity interest in Malabar Resources Limited (Malabar), bringing the Company's total equity interest to 22.97 per cent at the end of the period. Payments for property, plant and equipment totalled $126.0 million during the period (31 January 2024: $146.2 million), 13.8 per cent lower than the previous period reflecting the completion of the capital investment in the Bengalla Growth Project, offset by the continued ramp-up of New Acland Mine. Net proceeds from the sale of property, plant and equipment during the period totalled $27.7 million (31 January 2024: nil) representing proceeds from the sale of West Moreton land assets and subsidiary companies, including the former Jeebropilly Mine and its associated mining leases. Financing cash flows and capital management Cash outflows from financing activities were $196.2 million for the period (31 January 2024: $258.6 million). Capital returns totalled $186.0 million for the period and related to the payment of the 2024 financial year fully franked final dividend (31 January 2024: $253.6 million). The Directors have declared an interim dividend of 19.0 cents per ordinary share. This dividend is fully franked and payable on 9 April 2025 to shareholders registered as at 25 March 2025. The Company is focused on returning value to shareholders and will continue to do so through methods that maximise returns. During the 2024 financial year, the Company successfully raised $300 million senior unsecured convertible notes due 12 July 2029 (Notes). Since their issuance, the Notes have shown steady performance in the secondary market. During the period, the Notes have traded within a relatively stable price range of approximately 94 per cent to 102 per cent of face value, primarily driven by movements in the underlying share price. As of 31 January 2025, the Notes were quoted at a mid-market price of approximately 100.5 per cent of face value, with the underlying share price closing at $4.84 per share. Half Year Report to 31 January 2025 New Hope Group 09 Directors' Report continued Operating and financial review continued Review of operations Safety and wellbeing The Company prioritises the safety and wellbeing of our people and communities. Our key operational safety metric is the All-Injury Frequency Rate (AIFR), which recognises both short and long-term health and safety risks that can impact wellbeing and represents all types of injury to provide a holistic indicator of safety and risk. The 12-month moving average AIFR was 32.03 at the end of the period, up from 30.20 at the end of the previous period. The Company continues to monitor Total Recordable Injury Frequency Rate (TRIFR) as a supplementary performance indicator. The Company's twelve-month moving average TRIFR was 4.08 at the end of the period, up from 2.55 at the end of the previous period. The restart of operations at New Acland Mine means the Company has new people operating new equipment, resulting in additional operating hours and an increased likelihood for an incident to occur. Whilst the above safety measures have moved unfavourably compared to their position at the end of the previous period, the AIFR and TRIFR have both decreased over the last six months as the Company continues to improve its safety performance. Environment As a responsible operator, the Company carefully manages its environmental impacts in compliance with the regulations in our operating jurisdictions. We progressively rehabilitate mined land towards final land uses outlined in closure and rehabilitation plans approved by relevant government authorities. We work to restore disturbed land and to improve rehabilitation and post-mining land use outcomes by planting vegetation, optimising water flows and generating productive soil on rehabilitated land. For detail on our environmental performance, see the Sustainability section of the Annual Report 2024. Marketing The Company achieved an average sales price, excluding hedging, of $173.3/t (31 January 2024: $197.0/t). The price achieved including hedging was $180.3/t (31 January 2024: $213.3/t). Over the six months to 31 January 2025, the gC NEWC 6000 traded within a range of US$115.2/t to US$146.4/t, closing at US$115.2/t for the month of January 2025. A mild winter in South-East Asia put downward pressure on the gC NEWC 6000 with seasonal demand in line with supply, particularly from Australian high-energy producers. The Company expects the market to find balance through calendar year 2025. During the period the API-5 price remained relatively stable, trading within a range of US$80.5/t to US$90.3/t and closing at US$80.5/t for the month of January 2025. Half Year Report to 31 January 2025 New Hope Group 10

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